Strategic Management and Leadership: M&S Case Study Analysis

This case study analyzes the business strategy of Marks and Spencer, a multinational retail company. It explores the company's history, competitive landscape, and current strategic management, including its strengths and weaknesses. The report examines the company's leadership style, specifically focusing on transactional leadership, and assesses the effectiveness of its strategies. It identifies areas for organizational growth, such as market penetration and new market development, and discusses the importance of enhanced business and commercial awareness for effective strategy implementation. The study highlights the challenges M&S faces in its food sector and the need to address customer demands to maintain a competitive edge in the retail market. The analysis provides insights into the company's past performance and future prospects, offering valuable information for business development and strategic planning.

Business case

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
History of company.....................................................................................................................1
Company competition.................................................................................................................2
Company's current strategic management..................................................................................3
Company's leadership..................................................................................................................5
How and why the strategy for that company has been working or not ......................................5
Identify with options for the company and organisational growth which add value to the
business ......................................................................................................................................6
Discuss enhanced business and commercial awareness that enables more effective
contribution to the implementation of strategy...........................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is defined as continuous planning, evaluating and assessment of
certain necessities of overall organisation in order to achieve targets. A company makes certain
strategies in order to earn competitive edge in comparison with all competitors(Velikorossov and
et.al, 2020). It includes development as well as implementation of all objectives that a company
makes in context with all stakeholders whether they are employees, customers and so on. In
terms of leadership, it is defined as the concept of encouraging and motivating people in order to
achieve their goals and objectives. They set certain directions so that everyone within the
organisation do right things. The below report involves history, competition, recent strategic
management, leadership. It also involves capabilities of the company and their leadership as well
as management. The report is based on the case study of Mark and Spencer. It is one of the top
multinational retail company located in London. The company was founded in 1884 by Thomas
Spencer and Michael Marks followed by its conclusion.
MAIN BODY
History of company
As per the view point of Amelia George, 2018, Mark and Spencer is one of the top
British multinational retailer founded in 1884. It is the public limited corporation whose shares
are been traded in terms of London stock exchange. The company mainly deals in food products,
home as well as clothing items. They provide their products all over all the world. In context
with recent situations the organisation has approximately 1463 stores in which some of them
owned while some are been franchised(Dzwigol, 2020). The main mission of company is to
provide great value of their products for the investment been done on them. Its operations are
through two segments which are UK and other one is with respect to international. In context
with UK businesses they involved retail as well as franchise operations and in context with
International it included their owned businesses. There were certain principles on which
company was founded and these are value, service, trust and innovation too.
Earlier Mark and Spencer used to sell only British made products but after few period of
time they expanded their organisation into long term relationships with British manufacturers.
They company main focus was on their products quality. In the year 2013, they returned to their
roots and opened their store in Kirkgate Market. When their new stores got opened they used to
1

call their showrooms as Penny Bazaar. Through this they encouraged all their consumers and
attracted them without any kind of social control to purchase their products. In context with the
year 1900-1920, they built up a various competitors and became a public organisation as their
owners died. In terms of year 1920-1940, their business became strong as many businesses were
getting closed due to which it became their major strength(Barbosa, Castañeda-Ayarza and
Ferreira, 2020). Mark and Spencer build up partnership with the University of Leeds across
various channels like in terms of community outreach work. They offered various opportunities
to get indulge into children as well as young people with the help of industry projects in relation
to improve their experiences. As per their history they built up a 100-point eco-plan. It is
considered as the modern expression of how any business is done like in terms of creating
partnerships or managing waste.
Company competition
As per the case study of Mark and Spencer, there are two main issues with respect to their
competition. It is further been explained as below:-
Issue 1:- The company never listened to their customers due to which their competitors
were getting effective.
Issue 2:- Their food sector was not much good in comparison with their competition
In context with issue one which is that they never listened to their customers due to
which their market share was also getting decreased. The company faced lot of struggle and their
reduction in context with their remarkable image. The first factor was that they didn't appeal to
generation. As per customers demand they were selling those clothes which were not up to their
demands and were considered as boring. As in context with their main competitor which is
TESCO, their business was getting affected in a major way. It was considered as the main
problem of company that they never listened about what their customers are actually saying.
They didn't made a good connection with their audiences. Earlier customers were much happy
with the brand because they were getting free biscuits but when they decided to not offer all
customers got upset.
In context with issue 2 which states that their food sector was not much good as compared to
their competitors. It was been analysed that their clothing products were very effective and build
up a good image but in context with their food sector it was not good. It became a major issue for
them so to tackle such issue it was been recommended that they should implement good
2

products and implement more stores so that in comparison with their other competitors they can
also lead in the market. In comparison with their other products like in clothing sector or home
made products they were making a remarkable image but as in context with their food sector
they were not much good in comparison with other brands like TESCO, Waitrose and many
more. It was been evaluated that due to their low food sector their market share was getting
reduced and was not able to build up their competitive position in market(Keding, 2020). It was
very important for their company to enhance their food sector also because competition was
continuously increasing so to deal with them they had to initiate new food stores, attractive
products so that audiences gets attracted to their food sector also instead of just focusing on their
clothing products. Though the company is enhancing its growth but it is crucial for them to
achieve growth in every sector they deal in because there are other leading competitors also who
has build up their image and reputation in a good way. So, instead of just focusing on their
clothing products it is needed that they should focus on their food products too.
Company's current strategic management.
As case study states that Marks and Spencer is considered as one of most leading
multinational retail company of United Kingdom. As strategic management generally consists of
various strategies. As strategic management is all concerned with gaining competitive advantage
of company. And competitive advantage could be gained over various competitors by
providing delivery of products and services which are of distinctive as well as of unique nature.
It basically helps in enabling Marks and Spencer to establish its company itself specifically in
corporate industry by attracting various customers who are able to search better satisfaction in
different elements which company could choose to exemplify as a source of its strategic growth
and strength. Marks and Spencer entails company which makes company's internal strength
which results in creating a value which specifically determines its customers.
Strategic management of Marks and Spencer is defined process of company's strategy,
its implementation as well as monitoring for ensuring strategy that helps in accomplishing
desired goals and objectives of company(Wang and et.al, 2020). In Marks and Spencer it
consists of basically a process which shows agreement on importance of process and initiation
of strategic management process, clarification and determining company's goals and
objectives, mission and present strategy with analysis of company 's external surroundings that
consists of threats and opportunities which are present in market, determining and analysing
3

key stake holders as well as defining company's main interests by assessing strategic issues that
confronts company for generating strategic options and selecting various strategies for
implementing as well as eventual implementation and use of chosen strategy.
According to case study Marks and Spencer's strategic management is defined by
analysing as well as screening of various internal and external company's environment. It
has been analysed from case study that company should aggressively and passively creates its
respond to changes which takes place according to socio cultural environment. Company's
various strategies are being used in their operations for dealing with issues of making
customer's relations by determining their needs and dealing with competition which are as
follows: Redefining target market: As Marks and Spencer should narrow down its target
market in order to have better respond to corporate market's requirements as well as
consumer preferences(Flammer and Ioannou, 2020). As in clothing sector of company
is running good but its food sector is performing well in markets and for assessing that
it is important for company's management to determine target market audience so that
according to that manufacturing of food products and services could be taken well. Market penetration: For dealing with issues of competition and making customer's
relation is important for company to adopt market penetration by designing and making
changes in control structure of company. As this analysis states that there is new
leadership which has been changed by inward looking culture control by making
external hiring and bringing skilled as well as talented workforce. Company should
adopt new branding tools and techniques for creating and maintaining good amount of
customers in markets.
 New market development: As company should adopt strategy of having new market
development for generating profits and maintaining its survival in corporate
markets(Samimi and et.al, 2020). As there are various slashing or withdrawing from
some market but they are also carrying its operations in providing competitive
advantage for maintaining its market share in corporate markets to explore new
opportunities and threats which are present in markets in order to develop a new market
in retail sector.
4

Company's leadership.
Leadership refers to a process by which an executive could direct, influence as well as
guide various behaviours and working practices of others in order to achieve particular
objectives and goals of company. It is defined as a ability of a manager which induces various
subordinates to work through confidence and zeal.
As per case study of Marks and Spencer, company is using leadership style of
transactional leadership style which states and focused at committing to accomplish its goals as
well as objectives by ensuring that company should achieve high performance for maintaining
regular structure by its team level operations at each level of management for having
effectiveness of company(Ylöstalo and Adkins, 2020). As for resolving issues of maintaining
customer's relations and providing a good market share in food sector it is important for
company to use as well as implement effective leadership style in their operations so that
managers as well as leaders of company should be able to carry their business operations
effectively by influencing behaviours of their employees and workers as well as maintaining
making effective decision making in company(Yammarino and et.al, 2020). As for resolving
issues of case study of Marks and Spencer it is important for company to maintain proper
strategic management and implement effective leadership style in their operations for having
growth and generating profitability of company. As when leadership style is effectively used
in company, they are able to make certain changes and design their strategies according to it
so that customer's needs and requirements will be fulfilled well as well company will be able
to experience more growth.
How and why the strategy for that company has been working or not
The growth of the company and its failure is result of the efficiency of the company with which
it implements the strategies The strategies of the companies are decided by the observation and
analysis of the market and it is the strategies that sets the way for the company to achieve is
target (Ansoff and et.al., 2018). Through the vision of the company and achieving the missions
as well the company makes strategies, In case of Marks N Spencer the company has has many
successfully and some recent unsuccessful years. This market growth and downfall in a result of
the efficiency of the strategies and operational management. Followings are stated some of the
result and affect of the strategies of Mark n Spacers at its growth and downfall downfall
respectively.
5

Availability of the diversity: Marks N Spencer have a long history of existence, in which
it followed an autocratic style of management from top to bottom(Rudolph, Murphy and Zacher,
2020). This strategic approach of the company resulted in the gain in market coverage and
market postpositions the decision making and execution became easy for the company (Hunger,
2020). It is also because of this strategic approach that the company made sure there is availably
of diversity at the stores. In 1990 the market of the company was positively influenced due to the
easiness it proved to be for the customers.
Not keep up with the trend: Although the company had innovative idea in its earlier
phase of existence but with the passage of time and arrival of more and more competition readily
in the market, Mark n Spencer did not keep a touch of trends in the organisation. The market all
around the world was growing rapidly, with the competition making complete use of the trends
of the market Marks N Spencer was left out with the image of not being trendy enough to fulfil
the expectations of the target customers.
Identify with options for the company and organisational growth which add value to the
business
Value of the business is dependent upon the strategies and the vision and mission of the
business. It is the value of any business that attracts customer towards the business and hence it
plays a major role in the sustainable growth and success of the business. In case of Marks N
Spencer, adding value of the business is one of the top priorities of the companies around the
world. There are several ways to add values for the business and these ways follow a stepwise
process. The objective of adding value is to make a company more preferred by the target
customers thus achieving growth. Marks N Spencer have following ways to add the value.
Market Penetration: Marks n Spencer in order to add value to the organisation and can
adopt the strategy of market penetration that is it can analyse the cultural preference of the target
market and hence make appropriate changes on the function and strategies of the company in
order to attract more customers. It is through the marketing based on the analysis of the
preferences of customers. Such form of marketing can help the company achieve more market
share and thus growth.
New Market development: Marks N Spencer has a good brand image as it has served the
market effectively and came up with the services that were innovative for the market. Currently
the brand is going through a low phase in its most served market and hence the company should
6

use its brand image to develop business that through starting the business in a new market. In the
times of COVID-19 there are various factors that could prove out to be helpful for the company.
As the people these days are preference quality and authenticity which can be very well suited
with the brand image.
Online services: During the unprecedented times of COVID-19, a pandemic through out
world the company and due to lock down in many counties one of the best strategic adoption and
organisational advancement that Mark N Spencer could make is taking the entire business online.
Online market has a huge surge in the number of customers and this can be very well converted
into a good use. The company can grow through the commerce and help satisfy the customers
with the increases services and the easiness it offers the target customers.
Discuss enhanced business and commercial awareness that enables more effective
contribution to the implementation of strategy
In order to make and implement strategies it is the first and foremost priority of the
company to develop awareness of the commercial and customers preference. The changing
trends affects the market of every company in a huge manner and this can either lead the
company to grow or fail. In case of Mark N Spencer the company has seen multiple years of
market leadership but recent years have been difficult for the company to keep up to its brand
image. Following are the ways in which the company can make a positive impact through the
awareness of the market.
Marks N Spencer is known for its diversification and has been favourite for its quality
over the years. In recent years the company though the perspective of the customer have not been
able to deliver the quality in its food section. Although the clothing unit of the company is still
very much appreciated in the market but due to not adequate quality in food section the
company is not able to gain more customers. Additionally the number of stores of the company
has been restricted to the specific demographics as the companies main objective in the initial
stages was to deliver where the demand is high(Gardner and et.al, 2020). Such a a market
awareness and a true analysis of the issue the company possess through he perspective of the
customers. The company can make appropriate adjustment hence satisfying the customers and
thus gaining its position and market share back.
7

CONCLUSION
From above report it has been concluded that strategic management and leadership both
concepts are considered as an important elements for having success of business. This report
carries a brief explanation of case study of company which identifies company's competition,
strategic management along with various leadership styles that helps in gaining company's
growth and gaining profitability for company. This report also carries brief explanation of
improved business and commercial awareness which helps in enabling effective and efficient
contribution to implementation of various strategies in business.
8

REFERENCES
Books and Journals
Ansoff and et.al., 2018. Implanting strategic management. Springer.
Hunger, J.D., 2020. Essentials of strategic management.
Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Barbosa, M., Castañeda-Ayarza, J.A. and Ferreira, D.H.L., 2020. Sustainable strategic
management (GES): Sustainability in small business. Journal of Cleaner Production,
258, p.120880.
Dzwigol, H., 2020. Methodological and Empirical Platform of Triangulation in Strategic
Management. Academy of Strategic Management Journal, 19(4), pp.1-8.
Flammer, C. and Ioannou, I., 2020. Strategic management during the financial crisis: How firms
adjust their strategic investments in response to credit market disruptions. Strategic
Management Journal.
Gardner, W.L., and et.al, 2020. The leadership trilogy: A review of the third decade of the
leadership quarterly. The Leadership Quarterly, 31(1), p.101379.
Keding, C., 2020. Understanding the interplay of artificial intelligence and strategic
management: four decades of research in review. Management Review Quarterly, pp.1-
44.
Rudolph, C.W., Murphy, L.D. and Zacher, H., 2020. A systematic review and critique of
research on “healthy leadership”. The Leadership Quarterly, 31(1), p.101335.
Samimi, M., and et.al, 2020. What is strategic leadership? Developing a framework for future
research. The Leadership Quarterly, p.101353.
Velikorossov, and et.al, 2020. Strategic management.
Wang, Z., and et.al, 2020. Strategic management of product recovery and its environmental
impact. International Journal of Production Research, pp.1-21.
Yammarino, F.J., and et.al, 2020. Is leadership more than “I like my boss”?. In Research in
personnel and human resources management. Emerald Publishing Limited.
Ylöstalo, H. and Adkins, L., 2020. Economizing the political: Workfare reform in strategic
management mode. Current Sociology, p.0011392120913579.
ONLINE
George, 2018, Marks and Spencer case study [Online] Available
Through:<https://readessay.com/marks-and-spencer-case-study/>
9